The biggest news of the week has been Facebook’s IPO again, but this week it’s for all the wrong reasons as after all the celebrations and hype which surrounded the ‘biggest technology flotation in history’, Zuckerberg is being sued by Facebook’s shareholders, who are bringing the lawsuit after what is now being called a “disastrous IPO”. The suit accuses Zuckerberg, Facebook and several banks, led by Morgan Stanley, of hiding the company’s weakened growth forecasts ahead of its $16bn initial public offering.
Simultaneously another lawsuit has been quietly settled by Facebook, which could have even greater ramifications for Facebook’s commercial plans. Five users have forced Facebook to cough up an unknown amount for using their faces in ‘sponsored stories’, which controversially allow brands to use the photos and names of people who have ‘liked their company’ in their adverts on the social network because Facebook claim that by ‘liking’ a brand the user aligns themselves with that brand. It’s nebulous at the very least and something other brands are unlikely to want to risk, and it will be interesting to see how that unfolds, especially as Facebook has just added the option of ‘liking’ brand pages directly from posts.
The privacy minefield continues as the EU ePrivacy directive comes into effect tomorrow (and if you haven’t done your cookie audit and set your compliance, or are still confused, read our article to find out what you need to do) as well as the potential row brewing with Twitter, who on the one hand announced that they won’t be setting tracking cookies if users opt out, but on the other there came news that they are going to be selling consumer data, which is great, without allowing consumers to access it themselves, which is likely to land them in a heap of trouble.
In other news, cybercrime costs companies an average of $214,000 per attack; Teens prefer social media to TV, which is probably why Vimto is moving its marketing spend from TV to digital; KurbKarma launchs in New York… watch this space! And the BBC’s ‘torch cam’ is a resounding success as it tracks the progress of the Olympic torch across the UK, saluted by Union Flag-waving elephants along the way.
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